Local Government, Planning and Land Act 1980

5 (1) Regulations may provide for ascertaining the aggregate of the expenditure to which this paragraph applies of all local authorities, for apportioning the aggregate among the authorities and for ascertaining the amount by which the block grant payable to each authority ought to be increased or decreased.

(2) The Secretary of State shall, in accordance with regulations under this paragraph, ascertain at such time as may be specified by the regulations—

(a) the estimated amount of the increases and decreases of the block grant which ought to be made for any year, and

(b) the actual amount of these increases and decreases,

and he shall in paying the block grant for any year adjust the amount of that grant in accordance with the estimated amounts so ascertained and shall in paying that grant for the earliest practicable subsequent year make any adjustment necessary to offset differences between the estimated and actual amounts so ascertained.

(3) Subject to sub-paragraphs (4) and (5) below, this paragraph applies to such expenditure as may be specified by regulations, being—

(a) expenditure, other than that to which paragraph 6 below applies, incurred by local authorities in the exercise of their functions as local education authorities ;

(b) expenditure incurred by local authorities on research into any of their functions, in the training of persons in matters connected with the functions of local authorities or in respect of persons to whom the training is given.

(4) Regulations specifying expenditure of any description under sub-paragraph (3) above may provide that only a specified proportion of that expenditure shall be expenditure to which this paragraph applies.

(5) Regulations under sub-paragraph (3)(a) above shall apply this paragraph to—

(a) expenditure incurred by local education authorities in the making of provision for primary and secondary education in respect of pupils not belonging to the area of any local education authority in England or Wales or to the area of any education authority in Scotland ; and

(b) expenditure, other than that to which paragraph 6 below applies, incurred by local education authorities in the making of provision for further education in respect of such pupils.